Collected a Payment from a Credit Customer

question 92

Multiple Choice

Collected a payment from a credit customer. This will be recorded with:

• A) a credit to an asset account.
• B) a credit to a liability account.
• C) a credit to Revenue.
• D) a credit to Sales Discounts account.

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Definitions:

Freight Costs

The charges incurred for transporting goods via air, land, or sea.

Machinery

Fixed assets used in the operation of a business to produce goods or services, often having a significant lifespan and being subject to depreciation.

Installation Costs

Expenditures associated with setting up equipment or machinery for its intended use.

Fixed Assets

Long-term tangible assets that a company owns and uses in its operations to generate income, not expected to be converted into cash within a year.